Direct mail has defied the doom-mongers to register a 12.7 per cent increase in spend in Q4 2010, according to the latest industry report, which claims the advertising market grew by 6.9 per cent to £15.5bn.
The Advertising Association/Warc Expenditure Report shows 2010 was the strongest year for adspend growth since 2000, and represented a major bounce-back from recession.
The performance was partly due to a higher than expected adspend increase in the fourth quarter of 2010. During the three month period, adspend increased by 5.8 per cent. Direct mail (up 12.7 per cent) was the strongest performing medium, just ahead of television (up 12 per cent).
Direct mail spend totalled to £1.68bn in 2009, rising to £1.71bn in 2010. A slight fall to £1.69bn is predicted for this year. Looking forward, growth is expected to dip to 2.9 per cent in 2011, before rising back to 5.5 per cent in 2012. The modest prediction for this year can be attributed to a relatively weak economy and falling consumer confidence.
Adspend growth will also suffer in year on year comparisons to its strong performance in 2010. But it is expected to revive in 2012, on the back of the London Olympics.
Advertising Association chief executive Tim Lefroy said: “These are good news figures, not just for the advertising sector itself, but for UK business more widely. Rising ad spend reflects investment in sales by business, growth in media and content and, ultimately, signals a competitive, healthy UK economy “
Warc data editor Suzy Young said that 2010 was an impressive year for UK adspend, including a surprisingly strong performance from direct mail in the second half of the year. “This could be attributed to advertisers relying more heavily on the more traditional and immediate forms of communication with the consumers,” she said.
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